Leasing a rental property in Alabama comes with a Southern spin, with friendly neighbors, spacious front porches, and a rock-solid Alabama lease agreement. The right lease agreement sets the tone for your landlord-tenant relationship, protects your investment, and makes sure that everyone is on the same page.
Disclosures (2)
Landlords must provide certain disclosures to tenants before they can hand over the keys. These disclosures are essential to protect the health and safety of the tenant and also to help protect the landlord’s liability.
- Lead paint: Federal law requires that landlords disclose information about lead paint and its hazards when leasing homes built before 1978.
- Landlord name and address: Landlords must also provide tenants with their contact information, including name and address.
Optional Disclosures and Addenda
Of course, it’s a good idea to provide some disclosures that the law does not require. These help protect both the tenant and the landlord, ensuring everyone is on the same page from the start.
Asbestos: Discloses any asbestos-related hazards that may be on the property, as well as ways to minimize risk.
Bed bugs: Informs tenants if the unit or one of the surrounding units has a history of suspected bed bug contamination.
Late/returned check fees: Outlines the fees for late or returned checks related to rent. Alabama does not limit the amount landlords may charge as a late fee, but does limit the fee on returned checks to $30 per check.
Medical marijuana use: Specifies the policy on the use of medical marijuana on the property.
Mold disclosure: Informs tenants of any known or suspected mold issues in the unit, as well as treatment options.
Move-in checklist: Outlines the condition of the unit at move-in. Also used at move-out to gauge property damage and justify any deductions.
Non-refundable fees: Discloses any fees that may be non-refundable. If not agreed to in the lease, these fees may become refundable upon lease termination.
Shared utilities: If tenants share any utility meters, landlords must explain how they will split the charges.
Smoking: Specifies the smoking policy of the unit, including the location of any designated smoking areas.
Consequences of Not Including Mandatory Disclosures
Mandatory disclosures are not just there to add one more thing to your to-do list as a landlord. Instead, they contain essential information designed to help protect your tenant and limit your liability as a landlord.
The Federal lead-based paint disclosure is critical, as the fines for not disclosing this information can run into the tens of thousands.
Security Deposit Regulations in Alabama
Most landlords choose to include a security deposit in their Alabama lease agreement, but the state has particular guidelines when it comes to the collection and return of these funds.
Maximum amount: Alabama landlords may charge up to the equivalent of one month’s rent as a security deposit, not including any separate or additional fees, such as a pet fee. (Ala. Code § 35-9A-201(a)).
Deposit receipt: There is no requirement for landlords to provide a receipt of payment for a security deposit, although it is best practice to provide one to avoid any issues or confusion down the road.
Security deposit return: Security deposits must be returned within 2 months of the tenant moving out of the unit. If the landlord does not return the deposit within this timeframe, the tenant may be able to receive two times the deposit amount (Ala. Code § 35-9A-201(b)).
Deductions: If the landlord withholds part of the security deposit for repairs or unpaid rent, they must give the tenant a complete, itemized deduction sheet (Ala. Code § 35-9A-201(b-c)).
Rent Payment Regulations
Likewise, Alabama also has clear guidelines on how rent can be charged and collected. Here’s what you need to know about your Alabama lease agreement.
Rent control/stabilization: There are no rent control or rent stabilization laws in Alabama. However, landlords must follow specific guidelines for any rent increase.
For tenants with a month-to-month lease, landlords must give 30 days’ notice before a rent increase takes effect. For standard leases, the landlord may raise the rent a “reasonable” amount at the end of its term (Alabama Uniform Residential Landlord and Tenant Act).
Late rent fees: There is no limit to what landlords may charge as a late rent fee, but the amount should be clearly outlined and agreed to in the Alabama lease agreement.
Grace period: Alabama law does not require a specific grace period when it comes to paying rent, although many landlords choose to include one.
Tenant’s right to withhold rent: Tenants may not withhold rent for any reason in Alabama (Ala. Code § 35-9A-164).
Violations
If a tenant violates any part of their Alabama lease agreement, it’s essential to know your rights as a landlord and the steps you should take to get back on track.
Lease violation: For lease violations, the landlord should provide a 7-day notice to cure or quit. If the same lease violation is committed more than once within 12 months, the tenant does not get a second chance (Ala. Code § 35-9A-421(d)).
Missed rent payment: At any time after the first missed rent payment, Alabama landlords may issue a 7-day notice to pay or quit (Ala. Code § 35-9A-421(b)).
Lease abandonment: if a tenant abandons their lease before the end of its term, the landlord may consider the property abandoned. At this point, they should attempt to re-lease the unit, but may be entitled to lost rent from the tenant until it is leased again (Alabama Uniform Residential Landlord and Tenant Act).
Self-help evictions: In Alabama, self-help evictions are illegal, and landlords should never attempt them.
Terminating a Lease
Ending a lease in Alabama, whether initiated by the landlord or the tenant, requires giving the proper notice and following the correct procedures to be considered legal.
Standard lease: In a standard lease, tenants may be able to legally end their lease early if they meet specific requirements, such as active duty military service, the unit becomes uninhabitable, or landlord harassment (Ala. Code § 35-9A-442(b)).
Month-to-month: For a month-to-month Alabama lease agreement, 30 days’ notice must be given by either the landlord or the tenant if they do not intend to renew their lease (Ala. Code § 35-9A-441(b)).
Property abandonment: Landlords must allow 14 days after move-out for the tenant to pick up any left-behind belongings. After this time, the landlord may dispose of said items with no penalty (Ala. Code § 35-9A-423(d)).
Renewing a Lease
Landlords must follow specific guidelines when it comes to renewing an Alabama lease agreement.
Notice requirements: If the landlord does not intend to renew the lease, they must give 30 days’ written notice to the tenant stating this fact (Ala. Code § 35-9A-441).
Renewals: Alabama landlords are not required to renew a tenant’s lease at the end of its term (Alabama Uniform Residential Landlord and Tenant Act).
Landlord’s Access to Property
Immediate access: In the event of an emergency, the landlord may enter the property without giving notice (Ala. Code § 35-9A-303(b)(1)).
Notice requirements: Alabama landlords are required to give a minimum of 2 days’ notice before entering the unit, and they may only enter at times considered to be “reasonable” (Ala. Code § 35-9A-303(c)).
Harassment: Violation of either of these policies may constitute landlord harassment. In this case, tenants may be able to obtain legal help to stop the harassment or even terminate their lease early and without penalty (Ala. Code § 35-9A-442(b)).
